DEC 3
Statutory notice procedure: Supervisory
notice procedure
DEC 3.1
Supervisory notice procedure
- 01/12/2004
DEC 3.1.1
See Notes
The Act requires the FSA, when proposing to
exercise its powers in certain circumstances, to use the supervisory notice procedure. The relevant
circumstances are set out in DEC
3 Annex 1 G. DEC
1.2.3 G includes a summary of the purpose of supervisory notices.
- 01/12/2004
DEC 3.1.2
See Notes
In DEC
3.1.3 G to DEC
3.1.10 G, the supervisory notice about a matter first
given to the recipient is referred to as the "first supervisory notice" and the supervisory notice given
after consideration of any representations is referred to as the "second supervisory notice". DEC 3 sets out the procedure which
applies when the FSA gives
a supervisory notice.
The flowchart in DEC
3 Annex 2 G illustrates
the procedure for the giving of supervisory
notices. A specimen notice for enforcement cases is at DEC
3 Annex 3 G.
- 01/12/2004
First supervisory notice
DEC 3.1.3
See Notes
In the circumstances listed in DEC
3 Annex 1 G, if FSA staff consider that action is appropriate,
they will recommend to the relevant decision maker that a supervisory notice be given. The recommendation
will say whether the action should take effect immediately, on a specified
date, or when the matter is no longer open
to review.
- 01/12/2004
DEC 3.1.4
See Notes
After considering the staff recommendation,
the FSA may:
(1) decide to take no action; or
- 01/12/2004
DEC 3.1.5
See Notes
If the FSA decides to give a first supervisory notice to
a person,
in accordance with the sections of the Act listed
in DEC
3 Annex 1 G, the notice must:
(1) give details of the action;
(2) inform him when the action takes effect,
which may be immediately, on a date specified in the notice or (except for
a supervisory notice given
under section 321 of the Act) when the matter is no longer open to review;
(3) state the FSA's reasons for the action and for its
decision as to when the action takes effect;
(4) inform him of his right to refer the
matter to the Tribunal and
give an indication of the procedure on such a reference; and
- 21/11/2002
DEC 3.1.5A
See Notes
Except
for a supervisory notice given
under section 321 of the Act,
the action may take effect immediately (or on a specified date) only if the FSA considers this necessary,
having regard to the ground on which it is taking the action.
- 21/11/2002
DEC 3.1.6
See Notes
- 01/12/2004
DEC 3.1.7
See Notes
The procedures for making representations
are set out in DEC 4.4. If the FSA receives no representations
within the period specified in the first supervisory
notice, the default procedures set out in DEC
4.4.13A G apply.
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Second supervisory notice
DEC 3.1.8
See Notes
The FSA will
consider any representations made in accordance with DEC 4.4 concerning a first supervisory
notice which the FSA has
already given.
- 01/12/2004
DEC 3.1.9
See Notes
If the FSA decides to take the proposed action,
or to take action in a different way, or decides not to rescind action that
is already effective, then in accordance with the sections of the Act listed in DEC
3 Annex 1 G, a second supervisory notice must
be given.
- 01/12/2004
DEC 3.1.10
See Notes
If the FSA decides to give a second supervisory notice, its
content will depend on the action the FSA decides
to take.
(1) If the FSA decides to take the action proposed in
the first supervisory
notice, or if action has already been taken which the FSA decides not to rescind,
in accordance with the sections of the Act listed
in DEC
3 Annex 1 G, the notice must inform
the person concerned
of his right to refer the matter to the Tribunal.
If a notice informs a person of
his right to refer the matter to the Tribunal,
it must also describe the procedure on such a reference.
(2) If the FSA decides to take different action from
that proposed in the first supervisory
notice, then in accordance with the sections of the Act listed in DEC
3 Annex 1 G, the second supervisory notice must
be in the same form as a first supervisory
notice (see DEC
3.1.5 G).
- 01/12/2004
DEC 3.1.11
See Notes
If the FSA decides not to take action, or decides
to rescind action that is already effective, then in accordance with the sections
of the Act listed
in DEC
3 Annex 1 G, the person concerned must
be informed in writing.
- 01/12/2004
DEC 3 Annex 1
Statutory notice procedure: Supervisory notice procedure
- 01/12/2004
See Notes
| Section of the Act | Description | Handbook reference | Decision maker |
| 53(4)/(7)/(8)(b) | when the FSA is exercising its own-initiative power to vary a firm'sPart IV permission |
Variation of Part IV permission on the FSA's own initiative
SUP 7 | RDC / executive procedures (Note) |
| 78(2)/(5) | when the FSA is proposing/discontinues the listing of a security | LR 5 | RDC/ Executive procedures |
| 78(2)/(5) | when the FSA is proposing/suspends the listing of a security | LR 5 | Executive procedures |
| 87O(2)/(5) | when the FSA is proposing/deciding to exercise or deciding to maintain, vary or revoke any of the powers in sections 87K or 87L in respect of an infringement of any applicable provision. | PR 5 | Executive procedures |
| 96C | when the FSA is proposing/suspends trading in a financial instrument | DTR | Executive procedures |
| 197(3)/ (6)/(7)(b) | when the FSA is exercising its power of intervention in respect of an incoming firm |
Intervention against incoming firms
SUP 7 | RDC / executive procedures (Note) |
| 259(3)/(8)/(9) (b) | when the FSA is exercising its power to give or, on its own initiative, to vary a direction to the manager and trustee of an AUT | Collective investment schemes | RDC |
| 268(3)/(7)(a) or (9)(a) (as a result of (8)(b)/(13)) | when the FSA is proposing/deciding to give or, on its own initiative, to vary a direction to the operator of a recognised scheme | Collective investment schemes | RDC |
| 282 (3)/(6)/(7)(b) | when the FSA is exercising its power to give a direction to an operator, trustee or depositary of a recognised scheme | Collective investment schemes | RDC |
| 321(2)/(5) | when the FSA is exercising its power to impose a requirement on a former underwriting member of Lloyd's | None | RDC |
| OEIC Regulations reference | Description | Handbook reference | Decision maker |
| Regulation 27 | when the FSA is exercising its power to give or, on its own initiative, to vary a direction to an ICVC and its depositary | Collective investment schemes | RDC |
| Note: The decision will be made by the RDC if it involves a fundamental change (see DEC 4.1.5 G) to the nature of a permission. | |||
- 01/07/2005
DEC 3 Annex 2
Statutory notice procedure: Supervisory notice procedure
- 01/12/2004
See Notes
The
FSA's decision making procedure for supervisory notices
- 21/11/2002
DEC 3 Annex 3
Specimen first supervisory notice
- 01/12/2004
See Notes
This annex consists only of one or more
forms or templates. Forms and templates are to be found through the 'Forms'
link under Useful Links section at www.fsahandbook.info or on the Handbook CD-ROM.
- 21/11/2002